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Gameskraft CFO siphoned Rs 250 Cr for F&O trading

EntrackrEntrackr · 2m ago
Gameskraft CFO siphoned Rs 250 Cr for F&O trading
Medial

Bengaluru-based online gaming firm Gameskraft Technologies is grappling with a major financial scandal after its former CFO, Ramesh Prabhu, allegedly diverted Rs 250 crore of company funds to personally trade in the futures and options (F&O) segment. The unauthorized transactions, which reportedly took place between FY20 and FY25, have not only led to significant losses but also exposed weaknesses in internal governance at Gameskraft. The controversy came to light after Prabhu reportedly sent a voluntary confession email to the company in March 2025, admitting to misusing company funds for personal trading. According to the media reports, Rs 231.39 crore was transferred to Prabhu’s personal account at RBL Bank, under his sole control, and used for F&O trading. To cover his tracks, he allegedly falsified company records and created fake mutual fund statements, presenting the diverted money as legitimate investments. Prabhu, a Chartered Accountant by training, had joined Gameskraft in 2018 and rose to the position of CFO. While the exact motive remains unclear, reports suggest that he may have intended to generate profits and return the capital, but the trades reportedly resulted in substantial losses, compelling his confession. In response, Gameskraft has filed an FIR against Prabhu at Marathahalli police station under multiple sections of the Indian Penal Code, including theft, criminal breach of trust, forgery, and falsification of accounts. The company has written off Rs 270.43 crore in the FY25 financial statements due to these irregularities. Gameskraft has reported a 12% year-on-year increase in its revenue to Rs 3,896 crore in FY25 from Rs 3,475 crore in FY24. At the same time, its profits shrank 25% to Rs 706 crore. In the financial report for FY25, the company has also mentioned Rs 270 crore as exceptional items. The incident comes at a challenging time for Gameskraft, which has already been hit by regulatory changes following the government’s Promotion and Regulation of Online Gaming Act, 2025, which banned real-money online gaming. Platforms under the company, including RummyCulture, Gamezy, Pocket52, and Ludo Select, were forced to suspend operations, compounding the financial impact.

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Gameskraft lays off 120 employees

EntrackrEntrackr · 2m ago
Gameskraft lays off 120 employees
Medial

Gameskraft, one of India’s largest real-money gaming companies, has laid off about 120 employees across teams as part of a restructuring exercise triggered by the government’s blanket ban on online money games. The layoffs come at a turbulent time for the firm, which is also reeling from a fraud scandal involving former CFO Ramesh Prabhu, who allegedly siphoned off Rs 270 crore over nearly five years. An FIR has been filed against him following the company’s complaint at Bengaluru’s Marathahalli police station. Affected employees will receive severance pay, leave encashment, and extended group health insurance until March 2026, with an option to convert policies to individual plans. Founder Prithvi Singh said the decision was forced by “external realities” and not employee performance, adding that Gameskraft would support outgoing staff during their transition. Founded in 2017, Gameskraft had been one of the fastest-growing real-money gaming firms, operating platforms like Rummyculture and Pocket52, both of which have now been shut following the new law. According to TheKredible, the company’s FY25 net profit dropped 25% to Rs 706 crore because of the 28% GST, increased taxes, and one-time accounting changes. However, the company’s revenue rose 12% to Rs 3,896 crore from Rs 3,475 crore in FY24. Gameskraft joins other gaming firms downsizing after the ban. A23 Rummy (Head Digital Works) cut 500 jobs, Zupee axed 170, MPL is shrinking up to 60% of staff, and Baazi Games has reduced headcount by 200. Games24x7 is reportedly laying off 70% of its workforce.

Sensex, Nifty close 2% lower as geopolitical tensions, regulatory changes weigh on markets

Money ControlMoney Control · 1y ago
Sensex, Nifty close 2% lower as geopolitical tensions, regulatory changes weigh on markets
Medial

- Indian equity benchmarks, Sensex and Nifty, closed over 2 percent lower on October 3 due to escalating Middle East tensions, tightening SEBI regulations on F&O trading, and a surge in the Chinese market. - All 13 sectoral indices sank into the red, with Nifty Bank, Energy, and Auto leading the plunge. - Broader markets also declined, with the BSE Midcap and Smallcap indices shedding 2.3 percent and 1.8 percent, respectively. - The Middle East conflict escalated after Iran launched ballistic missiles at Israel, raising concerns of potential retaliation and disruption of oil supplies. Crude-sensitive stocks took a hit as oil prices approached $75 per barrel. - New rules introduced by SEBI for the F&O segment have raised concerns about lower trading volumes and reduced retail participation, affecting overall market liquidity. Foreign investors have redirected funds to the Chinese market, adding further pressure on Indian stocks.

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